June and July saw significant increases in the number of custody accounts opened, driven by the upcoming Initial Public Offering (IPO) of Banco de Fomento Angola (BFA) shares scheduled for September. The number of custody accounts opened in the first seven months of this year grew by 32% compared to the same period last year, according to data from Angola’s Central Securities Depository (CEVAMA). By July, CEVAMA recorded a total of 4,222 custody accounts, 1,020 more than the 3,202 accounts registered during the first seven months of the previous year.
The rise in new accounts is attributed to the forthcoming BFA IPO. Typically, the number of accounts increases in the months leading up to IPOs. Following the announcement of the BFA share sale for September, June and July saw notable spikes in custody account openings. While from January to May the monthly number of accounts stayed below 565, it reached 699 in June and 913 in July.
A custody account identifies the holders of securities or other financial instruments registered with CEVAMA. Its purpose is to safeguard, maintain, and manage financial assets on behalf of third parties for transactions on the regulated market (BODIVA). Accounts are opened through an intermediation contract with commercial banks, investment banks, multiple banks, brokerage firms, and securities distributors authorized by the Capital Market Commission (CMC).
ÁUREA is the leading intermediary, with 1,446 accounts opened in the past seven months, representing 34% of all new accounts at CEVAMA. Following are BFA Capital Markets (BFACM) with 1,205 accounts and Lucrum Trust with 626 accounts.
Meanwhile, commercial banks that had until the end of this year to transfer investment services and activities to Securities Brokerage and Distribution Companies saw the deadline extended to December 2030. This extension accounts for the complexity of the transition, the need to develop institutional capacity, and to maintain market stability.
Banks with the largest investment volumes have already transferred their activities to securities distribution companies owned by the banks themselves, such as BAI with ÁUREA and BFA with BFACM. Together, ÁUREA and BFACM hold 63% of the accounts opened in the last seven months.
In the first half of the year, four other banks also opened new accounts: Standard Bank with 50, Access with 11, Yetu with 8, and Banco Valor with 2, indicating continued activity.
According to CEVAMA, about 77,510 custody accounts have been opened since 2021. However, most of these accounts hold no assets and have had no activity since opening, as the majority are created specifically during periods when IPOs are announced. If an investor fails to acquire the intended shares, the account remains inactive.
Source: Expansão
